Only a few things are needed to make good worm compost:

A Worm Bin
Suitable Bedding Material
Red Worms
Worm Food

Where to Put Your Worm Bin         
Place your bin in the shade and, if possible, under a tree or an overhang to protect from frost. As long as outdoor temperatures are between 30 and 90 degrees and you have at least 4 inches of moist bedding in the bin, your worms should be fine. 

Good spots for your bin:

•  Under a tree
•  Garage
•  Under the eaves
•  Along side of house
•  Patio or deck
•  Shed

Bedding Materials
The compost worm’s natural habitat is in piles of fallen leaves or manure. You will need at least four inches of bedding to keep the worms cool and moist, to give them fiber to eat and to discourage fruit flies from getting into the food. For best results, make bedding from a mixture of materials, including brown leaves (no pine, redwood, bay or eucalyptus), straw, sawdust, shredded corrugated cardboard, finished compost, well-rotted and rinsed horse manure, coconut pith fiber (available from nurseries), and shredded black and white paper (no glossy or magazines).

A handful of soil provides grit to help the worms grind their food.

Put the bedding in your bin, toss in a handful of soil, moisten with water and mix until evenly damp.  You are now ready to add the worms and food. Over time, the bedding and food are eaten by the worms and turned into rich worm compost.

Worms
Compost worms are called “red worms” or “red wigglers.” They are often found in old compost piles, but are different from the earthworms you normally find in the ground. Their scientific names are Eisenia fetida and Lumbricus rubellus.  These worms have a big appetite, reproduce quickly and thrive in confinement. They can eat more than half their own weight in food every day!  Common earthworms and nightcrawlers don't survive well in bins since they normally live under the soil surface. When purchasing red worms, one pound is all you need to get started. Where to Buy Worms